Dropping below the s p 500 dividend yield which is crazy. You can make more money on the yield on the s p 500 than on the 30 year. Unfortunately the algorithms are utilizing global yields as the correlation to equities and that seems to happen from time to time. Remember prior to that it was the chinese currency any time that traded above a 7 Point Equities move lower. So youre looking at global yields and youre basically understanding that protectionism doesnt exist in global asset pricing. What do you mean . Thats exactly what is going on right now so the United States is blessed with technology. The United States is blessed with low energy. Zero versus the rest of the world. Correct but why is that becky . Because we are seen as the best economy globally and thats where i see protectionism doesnt exist in asset pricing the rest of the world is just driving capital here. So you can see bond yields coming down precipitously but still see it being something that doesnt drag the stock m
The u. S. And china agreeing to meet next month. Stocks, as you saw, reacting positively to that were going to talk abdomen goldman shrinking the partner ranks. Interesting story. Up to a dozen executives reportedly negotiating the exit. Is it a sign of a broader shift for this wall street bank . And shares of palo alto, they are up, as you can see the ceo joins us exclusively in a few minutes. Theyre up ahead of the bell, of course, this morning lets start with the markets this morning a chance for jim and i to get back on the same page as to where things stand we also got fairly positive adp numbers. 195,000 private sector jobs added in august. That was above the estimate. The consumer continues to be quite strong in this economy i heard you talking to joe about, you know, were the only ones that talk recession and we got a ten year above 1. 5 again. I thought when i saw its like the bonds also rise i think what weve seen is this endless yield going down versus, say, where the one ye
And doing another tax cut specifically for the middle class. At one point he floated a 10 tax cut. This is a political tax cut for the president saying if you elect republicans to the house and keep them in the senate, then you have a united republican government we will deliver another tax cut. That is certainly something possible if they win back the house, but difficult. Even under a divided government that is certainly not likely to happen before the next election. Host is this an effort to help at least with the economy as it stands or are there other factors besides politics involved . Guest politics seems to be the driving factor behind this trump has floated this is a way to get voters on his side and say the democrats are going to raise them, i will lower them. But also the issue of whether we will have a recession or some sort of slowdown is a point of contention the white house. You of the president talking abut a tax cut last week. Saying its great, there was a lot of mixed
Companies dont have exposure to china, with the exception of amazon, which as a retailer and a distributor has a lot of exposure there they have the most china risk, outside of if you leave f. A. A. N. G. , of course theres alibaba, which its all china exposure i guess thats how i would answer the question. I would also make the simple point if you look at the f. A. A. N. G. Names, you pretty much had acceleration growth, Revenue Growth acceleration for all four names but theres a couple of very specific issues in the back half of the year. The ones with the best fundamentals right now with the easiest valuations is facebook and google krish, whats the next irobot i mean, looking at hardware, whos got an amount of china exposure that could be really damaging you know, apple clearly has a pretty high china exposure and as you mentioned before in this program, anytime theres negative news on u. S. china trade, apple becomes kind of the punching bag what i would characterize as overall wh
Thats its really the problem because you know there are as you pointed out there are forces that want to retreat from internationalization but on the other hand to solve some of these problems it has to be international jumpier you want to do is to try to answer a great need to your question who we knew was. In a was you needed terrorism you need out there on his own you know from the United States governing everything and now we constantly and we are. Of protectionism and we are and all of the worldwide globalization now the new frame easier e generalization or does it change you know of asia you of both america and you off china of course if we we are not working together on europe and continue on in his breach between asia and the United States as west and east and you know we dont know. Because you know who are doing is a gross underwears under happiness of the population so in that case we have to give Everybody Needs of good access to the needy doods or to the groups and of cours